The Impact of Japanese Economic Cooperation on Asian Economic Development

Kenichi Kawasaki

No 331090, Conference papers from Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project

Abstract: The main objective of this paper is to overview the developments of Japan’s ODA and assess, in a quantitative manner, their economic impacts on Asian countries. The benefits of two alternative measures—one from capital formation by Japan’s ODA loans and the other from import liberalization in the Japanese market—are compared. Those economy-wide impacts of aid and trade on six Asian countries—China, Indonesia, Malaysia, the Philippines, Thailand, and Vietnam—are estimated by a CGE model of global trade, incorporating a certain mechanism of dynamic capital formation. Japan’s ODA loans are effective for economic growth in the Asian countries. Real GDP gains range from 0.1 to 1.6 per cent annually. Trade liberalization is efficient to improve economic welfare. Utility gains range from 0.2 to 1.9 per cent, which exceed those on account of Japan’s ODA. Variations in those economic impacts are much more significantly observed when examined by sector.

Keywords: International Development; International Relations/Trade (search for similar items in EconPapers)
Pages: 20
Date: 2003
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Persistent link: https://EconPapers.repec.org/RePEc:ags:pugtwp:331090

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